News24
23 Feb 2021, 23:40 GMT+10
Harmony Gold Mining is considering going further underground at the world's deepest mine as South African producers find it harder to dig for dwindling ore reserves.
The nation's top producer is studying mining beyond the current depth of about 4 kilometers at Mponeng to potentially extend the mine's life by 20 to 30 years, Chief Executive Officer Peter Steenkamp said. Ore reserves below that level are "massive" and Harmony is exploring ways and the investment needed to tap them, he said.
The company is one of the few remaining South Africa gold producers squeezing profits from aging assets. The nation's gold industry, once the world's largest, has shrunk as investors struggle with the higher costs and geological challenges of exploiting the deep mines. While Harmony is phasing out some of its mines over the next five years, its operations have benefited from higher gold prices and a historically weak rand that lowers costs.
"We can extend deeper down the mine and actually create new levels to be mined," Steenkamp said in an interview. "Mponeng is a mine with a huge amount of potential and there is an ore body below current infrastructure that's largely untouched."
Harmony, which is backed by billionaire Patrice Motsepe's African Rainbow Minerals, became South Africa's No. 1 gold producer after purchasing Mponeng and surface assets from AngloGold Ashanti last year.
South Africa's gold sector produced 91 tons of bullion last year and now employs just about 93 000 people, as big producers like AngloGold and Gold Fields shifted focus to more lucrative deposits elsewhere in Africa, Australia and the Americas.
Harmony is targeting maintaining Mponeng's annual production at about 250,000 ounces of gold, which may help sustain the company's total output at about 1.6 million ounces. Still, as mining depths increase, so do the risks of seismic events and workers being trapped underground.
"You have to manage seismicity and how you manage it" at deeper distances isn't too different to current depths, Steenkamp said. "We are quite comfortable that we have the technology and knowledge on how to do that."
Get a daily dose of Asia Pacific Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Asia Pacific Star.
More InformationDHARAMSHALA, India: The Dalai Lama turned 90 on July 6, celebrated by thousands of followers in the Himalayan town of Dharamshala,...
HONG KONG: China has fired back at the European Union in an escalating trade dispute by imposing new restrictions on medical device...
Shimla (Himachal Pradesh) [India], July 12 (ANI): Himachal Pradesh Chief Minister Thakur Sukhvinder Singh Sukhu flagged off a 20-member...
BEIJING, July 12 (Xinhua) -- China's position on the 2016 Arbitral Award on the South China Sea is consistent and clear. The award...
Phnom Penh [Cambodia], July 12 (ANI): Union Minister of State for External Affairs Pabitra Margherita reaffirmed the 'strong and enduring...
The arbitration has in fact become an anchor around the Filipino people's neck, weighing the nation down economically, said Herman...
REDMOND, Washington: Artificial intelligence is transforming Microsoft's bottom line. The company saved over US$500 million last year...
WASHINGTON, D.C.: A federal rule designed to make it easier for Americans to cancel subscriptions has been blocked by a U.S. appeals...
BASTROP, Texas: In a surprising turn at Elon Musk's X platform, CEO Linda Yaccarino announced she is stepping down, just months after...
NEW YORK CITY, New York: Former British prime minister Rishi Sunak will return to Goldman Sachs in an advisory role, the Wall Street...
LONDON, U.K.: Physically backed gold exchange-traded funds recorded their most significant semi-annual inflow since the first half...
AMSTERDAM, Netherlands: Some 32 percent of global semiconductor production could face climate change-related copper supply disruptions...